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My only experience with flipping is via TV shows such as "Flip this House" and the like. Of course, without some kind of drama, those shows would have no audience, and so the episodes that air always have some kind of unexpected (and usually very expensive) problem. For example, I'm watching one right now in which the flipper didn't know a) the house was subject to Historic Preservation guidelines, b) had foundation problems, and c) had a basement.
(Seriously -- he didn't know the place had a basement??? )
So here's my stupid question:
Obviously, while these guys usually (but not always) do a walk-through of the property before buying, it's apparent that they're not having inspections done. Is that typical? Are they so concerned that someone else will grab the property that they're willing to buy on the spot and take the risk that it might have major problems? Are they just foolishly optimistic? Or what ... ???
Silverfall is too optimistic. I have seen DOZENS of guys that ought to know better get places that they "had no idea". From real bricklayers that buy places with failing brick-on-block who figure "I can fix that in my spare time" but fail to realize that these days a bricklayer with "spare time" has no MONEY to pay for even brick and mortat, to electrians that figure the can "re-wire that fire trap in few weekends" only to see the place go up in flames, to exgavating contrators that 'forget' towns like to see a certfied professional engineer sign off on permits for foundation repairs, and the only plan that the engineer will sign off on is more than the excavotr can afford, there LOTS of contractors that get in WAY over their heads...
There are "gurus" out their that STILL preach about how " in the right LOCATION LOCATIO LOCATION you can buy a place without leaving the seat of your RollsRoyce" and THOSE FOOLS that listen to 'em are the guys that did not even know a place has a basement! Can you spell "money pit"? And the "guru"? He got his RR from the proceeds of his telemarketed $10,000 "expert course" NOT from buying fixer-uppers!
Silverfall is too optimistic. I have seen DOZENS of guys that ought to know better get places that they "had no idea". From real bricklayers that buy places with failing brick-on-block who figure "I can fix that in my spare time" but fail to realize that these days a bricklayer with "spare time" has no MONEY to pay for even brick and mortat, to electrians that figure the can "re-wire that fire trap in few weekends" only to see the place go up in flames, to exgavating contrators that 'forget' towns like to see a certfied professional engineer sign off on permits for foundation repairs, and the only plan that the engineer will sign off on is more than the excavotr can afford, there LOTS of contractors that get in WAY over their heads...
There are "gurus" out their that STILL preach about how " in the right LOCATION LOCATIO LOCATION you can buy a place without leaving the seat of your RollsRoyce" and THOSE FOOLS that listen to 'em are the guys that did not even know a place has a basement! Can you spell "money pit"? And the "guru"? He got his RR from the proceeds of his telemarketed $10,000 "expert course" NOT from buying fixer-uppers!
Most of the flippers out here did home inspections. I think because our market was not super red hot in the boom, the investments had to pencil out. Not to say that we didn't have some bad flips, or investors go into foreclosure but I just don't think it was a rampant as it was in CA, FL, NV, and AZ. We just didn't see insane returns, so they were more cautious here.
Brandon is correct. In the show "Flip this House" they usually buy the property on the court house steps. In real life they may need to evict the occupants.
All the drama, is what sells the show, and flippers are now buying for dirt cheap prices, and only then, being extra careful, and I have sent several I thought were a true find, only to see how I was wasting my time, as they wanted better deals. Several are still flipping, but not making the same returns they did a while back, as too many buyers looking for short sales and real deals, so slowing down the flippers. The good ones, still rework the homes, and not taking any shortcuts, as once their reputation is harmed, certainly gets the word out, and who needs that sort of negative advertising?
My only experience with flipping is via TV shows such as "Flip this House" and the like. Of course, without some kind of drama, those shows would have no audience, and so the episodes that air always have some kind of unexpected (and usually very expensive) problem. For example, I'm watching one right now in which the flipper didn't know a) the house was subject to Historic Preservation guidelines, b) had foundation problems, and c) had a basement.
(Seriously -- he didn't know the place had a basement??? )
So here's my stupid question:
Obviously, while these guys usually (but not always) do a walk-through of the property before buying, it's apparent that they're not having inspections done. Is that typical? Are they so concerned that someone else will grab the property that they're willing to buy on the spot and take the risk that it might have major problems? Are they just foolishly optimistic? Or what ... ???
Unless your an investor with deep pockets, you never want to purchase a home without an inspection. Investors with deep pockets will be able to take into consideration that a home could end up with a total tear down.
But also you should have a title search to make sure there is no leins against the place because if you purchase a property,where you purchase as is where is you could end up with the liabilities as well.
In this market flipping is insane, and in some markets are worse than insane. Most analysts say if you are purchasing a home with the intention to flip you have to wait at least 2 to 5 years depending on what state your in. Most investors right now are purchasing and renting out until the market turns around. And than they will start dumping the homes on the market again.
If you don't have allot of cash don't jeoparize your personal wealth by purchasing homes thinking your going to flip and make allot of money right now.
Thats interesting 007. I have a different take. I flip for a living and last year was my best year and I think I will top it this year. The reason is I have been able to buy so cheap, that I am able to sell cheap and fast. The buyers out nowadays just wont buy a fix up so I don't have the competition I used to.
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